5 things you should know before the stock market opens

Home Depot (HD) shares are falling in premarket trading after the company cut its 2024 revenue forecast. Investors are awaiting July’s wholesale inflation numbers as they will be one factor that could determine the Federal Reserve’s path to cutting interest rates ahead of tomorrow’s closely watched consumer inflation numbers. Alphabet (GOOGL) shares are rising ahead of Google unveiling its latest artificial intelligence (AI)-powered Pixel smartphones at its Made By Google launch event. China’s weak economy is putting pressure on global oil demand, according to the International Energy Agency (IEA). Barrick Gold (GOLD) shares are retreating slightly after rising 9% on Monday. U.S. stock futures are mostly higher ahead of wholesale inflation numbers as AI star Nvidia (NVDA) extends gains after rising 4.1% on Monday. Here’s what investors need to know today.

1. Home Depot falls due to lowering of comparable sales forecast

Home Depot (HD) shares are falling more than 3% in premarket trading after the home improvement giant said its comparable sales in 2024 would decline more than previously forecast. This contrasts with second-quarter revenue of $43.18 billion and earnings per share (EPS) of $4.60, both of which beat analyst estimates. The company, which is struggling with consumer austerity and a sluggish housing market that is making major renovations difficult, said full-year comparable sales would decline 3 to 4 percent from a year ago, worse than its previous forecast for a 1 percent decline. “During the quarter, higher interest rates and greater macroeconomic uncertainty put pressure on overall consumer demand, resulting in lower spending on home improvement projects,” said Chief Executive Officer (CEO) Ted Decker.

2. Wholesale inflation data due for July

Investors will have an opportunity to gauge the extent of price pressures when July Producer Price Index (PPI) data is released at 8:30 a.m. ET, a day before the key Consumer Price Index (CPI) numbers. Slowing or moderating inflation could prompt the Federal Reserve to cut interest rates as early as September, when the Federal Open Market Committee (FOMC) next meets. The government is expected to report a 0.2% increase in wholesale prices in July from June, in line with June’s month-on-month increase, according to a survey of economists. Dow Jones Newswires And The Wall Street JournalThe core PPI, which excludes volatile food and energy prices and is more closely watched by investors, is also expected to rise 0.2 percent in July, up from a flat figure in June.

3. Google presents the latest AI-powered Pixel smartphones at an event

Shares of Google parent Alphabet (GOOGL) are rising in premarket trading ahead of today’s annual Made By Google launch event, where the company will unveil its next generation of Pixel smartphones and provide updates on how it is integrating artificial intelligence (AI) into its devices using its Gemini AI model. The company has said it will unveil a “new era of phones” during the event with the Pixel 9 Pro and Pixel 9 Pro Fold, which Mizuho analysts called the “next catalyst” for Alphabet stock. The new AI devices could help Google better compete with Apple’s (AAPL) upcoming iPhone 16, which features Apple Intelligence.

4. IEA predicts slowdown in global oil demand due to China

According to the International Energy Agency (IEA), growth in global oil demand will slow to just under one million barrels per day this year and next, attributing this to the weak Chinese economy. “A significant shift in drivers is emerging,” the Paris-based agency said, noting that China’s oil demand fell for the third month in a row in June and could be weaker in July “as crude imports fell to the lowest level since the strict lockdowns in September 2022.” In contrast, the IEA said U.S. demand is rising, particularly for gasoline. A third of global gasoline consumption is consumed in the U.S.

5. Barrick Gold falls slightly after jumping on Monday on earnings beats

Barrick Gold (GOLD) shares are falling slightly after rising over 9% on Monday after the Canada-based gold miner reported better-than-expected second-quarter results. The earnings gains were driven by high gold prices and robust production. Despite the tailwind from the yellow metal, the mining giant has lagged its peers this year due to production concerns related to planned maintenance at several of its key mines. Still, it managed to produce 948,000 ounces of gold in the quarter, comfortably beating estimates.